Buy Alert: August 21, 2015

| August 21, 2015

Buy Alert:  August 21, 2015

 

Trade Details

Buy Wells Fargo (WFC) September 18th 55 Calls for $1.60 or better (lower)

 

Why?

Panic selling!  Loud noises!  Okay, this selloff has reached the point of absurdity.  Yes, China is a real concern.  But in reality, a weak Chinese economy is going to impact far fewer companies than what the crowd expects.  We’re in a period of “follow the herd” mentality, which tends to stray from rationality.  I’m not going to try to pick a bottom – instead we’re just going to find a great stock that’s oversold for no reason whatsoever.  Wells Fargo, one of the world’s largest banks, fits the bill to a tee.

We’re going to buy September WFC calls.  Conservative investors can take profits at $57.  Aggressive investors can hold up to $58.  For risk control, conservative traders should exit at $53, while more aggressive traders can hold down to $51.

 

 Recent Activity

Wells Fargo

 

Category: OTW Buy Alerts